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I don't have a crystal ball to claim I know what happens but swings are often due to futures trades and exchanges interested in liquidating longs and shorts. I
by account73466 7y ago
I don't have a crystal ball to claim I know what happens but swings are often due to futures trades and exchanges interested in liquidating longs and shorts.
I understand why exchanges are interested in wash trading but I don't know why market makers would provide any illusion since each transaction costs in order of 0.075% of its value.
- floatingatoll 7y agoWash transactions are cheap compared to the rewards they gamble will occur.
- account73466 7y agoCould you please provide an example?
- floatingatoll 7y agohttps://www.nyse.com/publicdocs/nyse/markets/nyse-arca/disciplinary-actions/2016/Electronic%20Transaction%20-%20Arca%20Decision.pdf https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/disci...
- shepardrtc 7y agoI believe market makers are paid by exchanges to provide liquidity.
- account73466 7y agoWhat you are referring to exists in regular stocks markets but not in cryptomarkets (at least, when we talk about relatively reputable exchanges). Take Binance as the largest crypto-exchange. Market makers are the ones who put buy or less limit orders. Market takers are the ones who put market order to "eat" limit orders. Market markers are not paid to provide liquidity. However, their fees decrease from, e.g., 0.075% per trade to say 0.030% per trade if they trade millions $ per month.